The following information relates to a company’s accounts receivable: gross accounts receivable balance at the beginning...

The following information relates to a company’s accounts receivable: gross accounts receivable balance at the beginning of the year, $300,000; allowance for uncollectible accounts at the beginning of the year, $25,000 (credit balance); credit sales during the year, $1,500,000; accounts receivable written off during the year, $16,000; cash collections from customers, $1,450,000. Assuming the company estimates that future bad debts will equal 10% of the year-end balance in accounts receivable.

1. Calculate bad debt expense for the year. ( Please show how to do this step first)

2. Calculate the year-end balance in the allowance for uncollectible accounts.

Expert Solution

ekkarill92 answered 2 years ago

The following information relates to a company’s accounts receivable: accounts receivable balance at the beginning of...

The following information relates to a company’s accounts receivable: accounts receivable balance at the beginning of the year, $410,000; allowance for uncollectible accounts at the beginning of the year, $30,000 (credit balance); credit sales during the year, $1,500,000; accounts receivable written off during the year, $21,000; cash collections from customers, $1,400,000. Assuming the company estimates that future bad debts will equal 8% of the year-end balance in accounts receivable. 1. Calculate the year-end balance in the allowance for uncollectible accounts....

The following information relates to a company's accounts receivable: gross accounts receivable balance at the beginning...

The following information relates to a company's accounts receivable: gross accounts receivable balance at the beginning of the year, $420,000; allowance for uncollectible accounts at the beginning of the year, $31,000 (credit balance); credit sales during the year, $1,550,000; accounts receivable written off during the year, $22,000; cash collections from customers, $1,600,000. Assuming the company estimates bad debts at an amount equal to 2% of credit sales. 1. Calculate bad debt expense for the year. 2. Calculate the year-end balance in the...

At the beginning of 2016, Miyazaki Company’s Accounts Receivable balance was $105,000, and the balance in...

At the beginning of 2016, Miyazaki Company’s Accounts Receivable balance was $105,000, and the balance in Allowance for Doubtful Accounts was $1,950. Miyazaki’s sales in 2016 were $787,500, 80% of which were on credit. Collections on account during the year were $502,500. The company wrote off $3,000 of uncollectible accounts during the year. Required: 1. Prepare summary journal entries related to the sales, collections, and write-offs of accounts receivable during 2016. 2. Prepare journal entries to recognize bad debts assuming...

What is the value of Accounts Receivable, Gross at the beginning and the ending of the...

What is the value of Accounts Receivable, Gross at the beginning and the ending of the current fiscal year? Any examples?

At the beginning of 2017, EZ Tech Company's Accounts Receivable balance was $160,000, and the balance...

At the beginning of 2017, EZ Tech Company's Accounts Receivable balance was $160,000, and the balance in Allowance for Doubtful Accounts was $2,700. EZ Tech's sales in 2017 were $1,200,000, 70% of which were on credit. Collections on account during the year were $770,000. The company wrote off $5,000 of uncollectible accounts during the year. Identify and analyze the adjustments to recognize bad debts assuming that (a) bad debts expense is 3% of credit sales and (b) amounts expected to...

Presented below is information that relates to Halifax Limited for 2020: Accounts Payable 49,000 Accounts Receivable...

Presented below is information that relates to Halifax Limited for 2020: Accounts Payable 49,000 Accounts Receivable 78,000 Bond Payable 600,000 Cash dividends declared on common shares 34,000 Collections of credit sales $1,100,000 Cost of goods sold 1,100,000 Equipment 85,000 Gain from transactions in foreign currencies (pre-tax) 220,000 Inventory 120,000 Loss on sale of equipment 350,000 Loss from early debt repayment 340,000 Loss resulting from calculation error on depreciation charge in 2019 460,000 Other expenses 120,000 Other revenues 180,000 Proceeds from...

A company’s year-end balance in accounts receivable is $2,000,000. The allowance for uncollectible accounts had a...

A company’s year-end balance in accounts receivable is $2,000,000. The allowance for uncollectible accounts had a beginning-of-year credit balance of $30,000. An aging of accounts receivable at the end of the year indicates a required allowance of $38,000. If bad debt expense for the year was $40,000 and if credit sales for the year were $8,200,000 and $7,950,000 was collected from credit customers, what was the beginning-of-year balance in accounts receivable?

Johnson Company calculates its allowance for uncollectible accounts as 5% of its ending balance in gross accounts receivable.

Exercise 7-11 (Algo) Uncollectible accounts; allowance method vs. direct write-off method [LO7-5, 7-6) Johnson Company calculates its allowance for uncollectible accounts as 5% of its ending balance in gross accounts receivable. The allowance for uncollectible accounts had a credit balance of $20,000 at the beginning of 2021. No previously written-off accounts receivable were reinstated during 2021. At 12/31/2021, gross accounts receivable totaled $333,400, and prior to recording the adjusting entry to recognize bad debts expense for 2021, the allowance for uncollectible...

The credit manager of Montour Fuel has gathered the following information about the company’s accounts receivable...

The credit manager of Montour Fuel has gathered the following information about the company’s accounts receivable and credit losses during the current year: Net credit sales for the year $8,000,000 Accounts receivable at year-end 1,750,000 Uncollectible accounts receivable: Actually written off during the year $96,000 Estimated portion of year-end receivables expected to prove uncollectible (per aging schedule) 84,000 180,000 Prepare one journal entry summarizing the recognition of uncollectible accounts expense...

Jupiter Corporation had $8,500 balance in accounts receivable at the beginning of the current year. The...

Jupiter Corporation had $8,500 balance in accounts receivable at the beginning of the current year. The beginning balance of allowance for doubtful accounts was $2,000. Early in January, $500 worth of receivable were written off as uncollectible. What is the net realizable value of accounts receivable, after the write off? Select one: a. $7,000 b. $1,500 c. $8,000 d. $6,500 e. $6,000

Question